Wall Street climbed back on an upward track Wednesday, rising as a surge in gold and other commodities prices prompted investors to snap up energy and materials stocks.
Gold picked up $34.70 an ounce, to close at $807.10, lifted by a weaker dollar and because investors seemed to be more willing to take on some risk, a trend that has also been apparent in the recent rally on Wall Street. Oil prices also rose, settling up $1.45, at $43.52 a barrel.
In turn, companies that make their money from commodities rallied, boosting the rest of the stock market.
Richard Cripps, chief market strategist for Stifel Nicolaus, said the rise in commodities suggests that some investors are betting on an economic rebound. "At this point in time, commodities going up are a welcome sign," he said.
Oil and coal stocks also rose.
"Despite a recessionary slowdown, the long-term outlook for energy still remains positive," said Eric Teal, chief investment officer at First Citizens BancShares Inc.
Still, investors are wary about the many trouble spots in the global economy.
The Dow Jones industrial average rose 70.09, to 8761.42. The Dow and the Standard & Poor's 500 index have advanced in 10 of the last 13 sessions.
The S&P 500 index rose 10.57, to 899.24, and the Nasdaq composite index rose 18.14, to 1565.48.
Since reaching multiyear trading lows on Nov. 20, the Dow has risen 16 percent and the broader S&P 500 has risen 19.5 percent, while the Nasdaq is up 19 percent.
"I think what you have now is people are looking among the carnage and saying 'Wait a minute, maybe the baby was thrown out with the bath water' " during the devastating selling of October and November, said John Merrill, chief investment officer at Tanglewood Wealth Management.
